Lease Renewal with Increase and Other Requests

[Polina Goncharova]

Hello BP!

I own a 3 Flat property on Chicago's Near West Side and I am planning on increasing rent in the following manner:

(Rent increase is due to market rents and a hike in property tax)

3bd/2ba, 1,150 sq ft Apartment

Current $1,150

Market $1,500+

Renewal $1,350

I am being gentle as I prefer to receive $1,500 but flipping the unit could cost more due cleaning and repaint costs (20+ft ceiling). But would like to ask if it is within reason to make maintenance requests with this renewal. The tenant has caused some damage to walls and I would request they either put a deposit of $300 or fix the damage on their own. Is that reasonable to request although I was not the original landlord that rented the unit to him? I don't have documentation on who caused the damage and there is no deposit. 

Do you have suggestions on ways that I could protect the integrity of the property while being reasonable and firm with a $200 rent increase?

Thank you all so much,

Polina

[Michele Fischer]

Agree wholeheartedly with the rent increase.  I would go 50% of the $350 gap between current and market rent, which is $1325 and very close to your $1350.  This will help you make progress toward market rent, but also keep it enough below market that they will see value in staying.

As far as the damage done, unless you have the original move in condition report, photos, or other assurance that they did the damage, I think you may need to suck it up.  If it is damage that can be fixed with $300, I'd just plan to do it at move out on your dime.  Hopefully you have good documentation of condition when you took over the property so that you can hold them accountable to any further damage.

Others may have other ideas, but I think the lack of deposit is water under the bridge as well.  Hopefully they truly understand that you do not have any of their deposit and that you have enough info to turn them into collections after move-out if it comes to that.  This may be of interest: https://www.biggerpockets.com/blogs/4445/51071-sel...